Changes in Australian Foreign Dividend Exemption Rules Enacted

On 16 October 2014, the law amending Australia's rules on foreign dividend exemption was enacted. The legislation provides for the following key changes:

• The wording of the exemption application is changed from when an Australian company holds a 10% "voting interest" of a foreign company to a 10% "participating interest", and from dividends made in respect of a "voting interest" to made in respect of an "equity interest" - the reason for the change is to disallow the exemption in respect of …